SDK to Sell Conductive Polymer Aluminum Capacitors Business

Tokyo, June 22, 2009 - (JCN Newswire) - Showa Denko K.K. (SDK) has decided to transfer its solid conductive polymer aluminum surface-mount capacitors business to Murata Manufacturing Co., Ltd. The capacitors, commercialized in 2000 with SDK's proprietary technologies and sold under the trade name of SDK-CAPTM, are characterized by their low ESR (equivalent series resistance) and high heat resistance. The capacitors are being produced at SDK's Oyama Plant, and demand for the product is expected to grow for use in PCs and OA equipment. However, SDK is aiming to take advantage of its rich stock of inorganic/metal technologies and concentrate its R&D resources on the areas of environmental and energy-related goods, including lithium-ion battery materials. Under these circumstances, SDK has decided to transfer its capacitors business to Murata Manufacturing, which is the world leader in the field of ceramic capacitors. To ensure smooth transfer of SDK's technologies, know-how and customer base, SDK and Murata Manufacturing will jointly conduct the business for the time being. The transfer will be finalized by the end of this year. SDK is carrying out its "Passion Extension" business plan for 2009 and 2010 in response to the drastic changes in the economic environment. Under the plan, SDK is improving its business portfolio through structural reforms, allocating managerial resources in an efficient way, and reducing costs substantially. As witnessed by the transfer of the capacitors business, SDK will continue speedily concentrating its operations on strategically selected areas. SDK will thus ensure its return to the growth track under the new business conditions. About Showa Denko Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .